WELLINGTON (ALETIHAD)
The United Arab Emirates and New Zealand have successfully concluded negotiations towards a Comprehensive Economic Partnership Agreement (CEPA) that will, once signed and implemented, enhance trade and investment flows between the two nations.
The latest deal in the UAE’s ongoing CEPA programme was confirmed by the signing of a joint statement by UAE Minister of State for Foreign Trade, Dr. Thani Al Zeyoudi, and New Zealand’s Minister of Trade, Todd McClay.
Once implemented, the UAE-New Zealand CEPA will reduce or remove tariffs, eliminate unnecessary trade barriers, improve market access, and create new platforms for investment and private sector collaboration with one of the world’s most globalised economies.
Upon the conclusion of negotiations, Al Zeyoudi stated, “New Zealand is a long-standing partner of the UAE with an economy that, like ours, is underpinned by trade and global connectivity. Our CEPA will serve as a catalyst not only for bilateral trade but for greater exchange between the UAE and the high-growth Asia-Pacific region, underscoring the scope and ambition of our foreign-trade agenda."
He added, "The UAE is committed to expanding opportunity for our private sector by enhancing market access to key economies, and with its well-developed agriculture and food-production sectors, New Zealand is a nation that holds outstanding potential across a number of industry verticals.”
McClay stated, “This CEPA will enable New Zealand exporters to participate in the UAE’s growing and vibrant economy. Our high-quality and safe agricultural goods, our strong manufacturing sector and our innovative services sector have a lot to offer to the UAE. We look forward to increased trade and people-to-people links between our countries.”
The UAE’s CEPA programme and expanding foreign trade remain the cornerstone of the UAE’s economic growth strategy.
In H1 2024, the UAE’s non-oil trade in goods reached a record Dh1.395 trillion, an 11.2 percent increase in foreign trade compared to H1 in 2023 and the sixth consecutive half of foreign trade growth.
It will further strengthen economic ties that have witnessed consistent growth in recent years, with bilateral non-oil trade totaling $460.3 million in the first half of 2024 – 11.5 percent more than the same period in 2023.
Today, the UAE is New Zealand’s largest trading partner in the Middle East, accounting for 50 percent of its trade with the MENA region, and the tenth largest globally.
In addition to increased bilateral trade flows, the CEPA is also projected to increase investment between the two countries, creating opportunities for collaboration across a number of priority sectors.
The UAE’s investments in New Zealand totaled more than $170.2 million in 2021, while FDI from New Zealand to the UAE rose to $74.2 million, with the UAE’s economic stability, low taxes and robust legal framework making it an attractive destination for New Zealand’s investment community.